Amgen Inc.
Amgen Inc. Fundamental Analysis
Amgen Inc. (AMGN) shows strong financial fundamentals with a PE ratio of 26.53, profit margin of 20.97%, and ROE of 96.65%. The company generates $36.8B in annual revenue with strong year-over-year growth of 18.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AMGN's fundamental strength across five key dimensions:
Efficiency Score
WeakAMGN struggles to generate sufficient returns from assets.
Valuation Score
WeakAMGN trades at a premium to fair value.
Growth Score
ModerateAMGN shows steady but slowing expansion.
Financial Health Score
ModerateAMGN shows balanced financial health with some risks.
Profitability Score
ExcellentAMGN achieves industry-leading margins.
Key Financial Metrics
Is AMGN Expensive or Cheap?
P/E Ratio
AMGN trades at 26.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AMGN's PEG of 2.66 indicates potential overvaluation.
Price to Book
The market values Amgen Inc. at 23.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.51 times EBITDA. This is generally considered low.
How Well Does AMGN Make Money?
Net Profit Margin
For every $100 in sales, Amgen Inc. keeps $20.97 as profit after all expenses.
Operating Margin
Core operations generate 27.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $96.65 in profit for every $100 of shareholder equity.
ROA
Amgen Inc. generates $8.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Amgen Inc. generates strong operating cash flow of $9.96B, reflecting robust business health.
Free Cash Flow
Amgen Inc. generates strong free cash flow of $8.10B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.03 in free cash annually.
FCF Yield
AMGN converts 3.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
23.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.97
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How AMGN Stacks Against Its Sector Peers
| Metric | AMGN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.53 | 29.28 | Neutral |
| ROE | 96.65% | 820.00% | Weak |
| Net Margin | 20.97% | -19743.00% (disorted) | Strong |
| Debt/Equity | 6.31 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.14 | 4.69 | Neutral |
| ROA | 8.51% | -17807.00% (disorted) | Weak |
AMGN outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Amgen Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.00%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-41.68%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
40.43%
Industry Style: Defensive, Growth, Innovation
High Growth